MarketSurge powers the charts in this video.
Rates are rising. The 10-year yield is not far from making a new multi-year high and reaching 5%. The market expectations for more rate cuts this year have significantly slumped. This is not a bullish backdrop for most stocks.
SPY, QQQ, and IWM made new YTD lows. Small caps IWM have already given back their post-election gains, and SPY is not far from closing its election gap. SPY and QQQ made a lower high last week and are now hanging on a thin thread.
There aren’t many financial assets that have remained above their VWAP (volume-weighted average price) since the elections. TSLA, Bitcoin, META, and GOOGL are still among them. TSLA and Bitcoin tested multiple times their VWAP since the elections. The more times one level is tested, the weaker it becomes. META finished green on Friday in an ocean of red. META would be among the big winners if TikTok really closes its business in the US.
One of the strongest groups in the New Year has been utilities. AI and quantum computing need vast amounts of energy, so it only makes sense that utilities like CEG, VST, GEV, TLN, and NRG are among the current momentum leaders.
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